nep-tra New Economics Papers
on Transition Economics
Issue of 2023‒05‒15
nine papers chosen by
Maksym Obrizan
Kyiv School of Economics

  1. Parental Allowance Increase and Labor Supply: Evidence from a Czech Reform By Jakub Grossmann; Filip Pertold; Michal Šoltés
  2. Shifts in Composition of Jobs: Upgrading, Downgrading or Polarization? The Case of Russia 2000-2019 By Gimpelson, Vladimir; Kapeliushnikov, Rostislav
  3. What if she earns more? Gender norms, income inequality, and the division of housework By Iga Magda; Ewa Cukrowska-Torzewska; Marta Palczyńska
  4. Inertia of peasant farms By Rozinskaya Natalia; Chaplygina Irina; Sorokin Alexander
  5. Academic Migration and Academic Networks: Evidence from Scholarly Big Data and the Iron Curtain By Donia Kamel; Laura Pollacci
  6. Well-being analytics for policy use: Policy evaluation through a well-being lens in Slovenia By Fabrice Murtin; Vincent Siegerink; Lara Fleischer; Julien Bonnet; Balázs Égert
  7. International Target Market Selection Using Entropy and Multi-Moora Methods through a Case Study By METİN, İsmail
  8. The Myth of the Middle Class Squeeze: Employment and Income by Class in Six Western Countries, 1980-2020 By Jad Moawad; Daniel Oesch
  9. Public Procurement and Tax Havens By Petr Jansky; Miroslav Palansky; Jiri Skuhrovec

  1. By: Jakub Grossmann; Filip Pertold; Michal Šoltés
    Abstract: We study the effect of a CZK 80, 000 (36%) increase in parental allowance, a universal basic income-type benefit, on the labor supply of parents in the Czech Republic. Drawing a parental allowance does not preclude labor market activity, which allows us to study the income effect. After the reform, mothers substantially prolonged the average period they drew an allowance. The labor market participation of mothers of young children decreased by 6 percentage points (15%). The estimated effect corresponds to a non-labor income labor supply elasticity at the extensive margin of about -0.5. The effect is particularly strong among mothers with their first child (10 p.p. or 28%) and among university-educated mothers (16 p.p. or 36%). We observe a virtually identical reduction in hours worked. We found no effect on the labor supply of fathers.
    Keywords: parental allowance, maternal labor supply, income effect of social policy, Czech Republic
    JEL: J13 J20 H53
    Date: 2023
  2. By: Gimpelson, Vladimir (University of Wisconsin-Madison); Kapeliushnikov, Rostislav (CLMS, Higher School of Economics, Moscow)
    Abstract: In this study, we explore the changing employment structure in the Russian economy since 2000. Does it change through a consequent substitution of relatively worst (in terms of quality) jobs by better jobs? Or through the destruction of middle quality jobs? Or do we observe stagnation and conservation of the job structure? Structural change of this sort can be brought by various factors among which technological progress and international trade that shape demand for labor of different quality and complexity play a special role. In search for clues to these questions, the authors use large data sets that cover two sub-periods divided by the 2008/9 crisis. The estimates presented in the paper allow the rejection of the polarization hypothesis and they document a fast upgrade of the job structure during the 1st sub-period and a stalemate during the 2nd one. Apparently, risks of job polarization are likely to be minimal until economic growth is recovered and a movement to the technological frontier is accelerated.
    Keywords: job, job structure, employment, polarization, wage distribution
    JEL: J21 J24 J31 J62
    Date: 2023–04
  3. By: Iga Magda (Institute for Structural Research, SGH Warsaw School of Economics, and IZA); Ewa Cukrowska-Torzewska (Faculty of Economic Sciences, University of Warsaw); Marta Palczyńska (Institute for Structural Research)
    Abstract: Using data from “Generation and Gender Survey” for Poland, we study the relationship between women’s relative income within the household, as measured by the female share of total household income, and women’s involvement in housework. We find that households in which the woman contributes more to the total household income are more likely to share housework equally. We also find that individual gender norms matter both for women’s involvement in unpaid work at home and for the observed link between the female share of income and inequality between the partners in the division of housework. Women from less traditional households are found to be more likely to share housework equally. However, this negative relationship between the female share of household income and female involvement in housework is not observed among more traditional couples.
    Keywords: household income, income inequality, housework, gender norms
    JEL: D10 D13 D31 J12 J16 J22
    Date: 2023
  4. By: Rozinskaya Natalia (Department of Economics, Lomonosov Moscow State University); Chaplygina Irina (Department of Economics, Lomonosov Moscow State University); Sorokin Alexander (Department of Economics, Lomonosov Moscow State University)
    Abstract: The article is devoted to the analysis of one of the features of the behavior of peasant farms that distinguishes them from the behavior of firms, namely the tendency to reduce production volumes in response to the improvement of market conditions (inertness, in the terminology of N.D.Kondratiev). The authors turn to theoretical explanations of this trend, in particular in the works of A.Chayanov, and then attempt to test the reliability of the identified feature on Russian data from the beginning of the XX century. Having analyzed the dynamics of the amount of land plowed by peasants in response to the dynamics of prices in various provinces of Russia, the authors find a significant negative correlation. Comparing with similar results for landlords, the authors come to conclusion that negative correlation is specific only to peasant farms, thereby proving the hypothesis of inertness.
    Keywords: Peasant economy, the inertia of the household, price elasticity of supply, cultivated areas, A.V. Chayanov, Russian empire, XIX-XX century
    JEL: Q10 Q12
    Date: 2023–03
  5. By: Donia Kamel; Laura Pollacci
    Abstract: Iron Curtain and Big Data are two words usually used to denote completely two different eras. Yet, the context the former offers and the rich data source the latter provides, enable the causal identification of the effect of networks on migration. Academics in countries behind the Iron Curtain were strongly isolated from the rest of the world. This context poses the question of the importance of academic networks for migration post the fall of the Berlin Wall and Iron Curtain. Using Microsoft Academic Knowledge Graph, a scholarly big data source, mapping of academics’ networks is possible and information about the size and quality of their co-authorships, by location is achieved. Focusing on academics from Eastern Europe (henceforth EE) from 1980-1988 and their academic networks (1980-1988), We investigate the effect of academic network characteristics, by location, on the probability to migrate post the fall of the Berlin Wall in 1989 and up to 2003, marking the year many EE countries held referendums or signed treaties to join the EU. The unique context ensures that there was no anticipation of the fall of the Eastern Bloc and together with the data that offers unique rich information, identification is achieved. Approximately 30k academics from EE were identified, from which 3% were migrants. The results could be explained by two channels, the cost and signalling channel. The cost channel is how the network characteristic reduces or increases the cost of migration and thus acting as a facilitator or a de-facilitator of migration. The signal channel on the other hand in which the network characteristic serves as a signal for the academic himself and his quality and his potential contribution and addition to the new host institution, thus also serving as a facilitator or a de-facilitator of migration. We find that mostly network size and quality results could be explained by the cost channel and signalling channel, respectively. Size of the network tends to be more important than the quality, which is a context-specific result. We find heterogeneous effects by fields of study that align with previous lines of research. Heterogeneous effects are explained by two things: threat of attention and arrest from KGB and the role of reputation, language, and network barriers.
    Keywords: networks, migration, academic networks, Big Data, brain drain, Iron Curtain, Eastern Europe
    JEL: C55 D85 F50 I20 I23 J24 N34 N44 O15
    Date: 2023
  6. By: Fabrice Murtin; Vincent Siegerink; Lara Fleischer; Julien Bonnet; Balázs Égert
    Abstract: This paper first identifies Slovenia’s main well-being challenges, namely to boost productivity and increase performance on economic indicators without compromising its low levels of inequalities in wealth and income, and to strive for better human capital outcomes, including health outcomes and adult skills. Second, the paper assesses the welfare impacts of some structural reforms based on the shadow price of employment, which is equal to 3% of household income. The largest welfare impacts stem from: i) a cut in regulation of the energy, transport and communication sectors; ii) an increase in ALMPs; iii) a cut in the average tax wedge on households; iv) a cut in the minimum wage; v) an increase in the number of weeks of maternity leave; vi) a cut in the replacement rate of unemployment benefits.
    Keywords: shadow prices, welfare analysis, Well-being policy analysis
    JEL: I31 I38 J88 H50
    Date: 2022–08–23
  7. By: METİN, İsmail
    Abstract: Today, despite the severe level of competition between businesses, companies dealing with foreign trade spend an enormous effort to sell their products overseas. Before taking the first step toward the act of exporting, companies are obliged to take some critical decisions. One of the strategic decisions is to determine the target market selection. This study aims to apply the Entropy and the Multi - Moora methods to define the target market selection strategy of a company that produces and plans to export cold storage and pre-cooling systems to foreign markets. The weights of the criteria that would be used in the evaluation and the selection phases of the study have been measured with the Entropy method. Alternative markets have been seized upon by using the Multi - Moora method and the most appropriate target market has been chosen accordingly. Upon the detailed calculations, Georgia has been observed to be the target market country that provided the related criteria at the most appropriate level. Romania and Kazakhstan follow this country, respectively.
    Date: 2023–04–04
  8. By: Jad Moawad (University of Lausanne); Daniel Oesch (University of Lausanne)
    Abstract: The public debate depicts the middle class as the victim of employment polarization and income stagnation. This narrative of a squeezed middle class suggests that people above and below fared better in terms of job and income growth. However, this narrative ignores basic insights from class theory and lacks empirical evidence. Based on the Luxembourg Income Study, we trace the evolution of employment and income by class for six large Western countries – France, Germany, Poland, Spain, the UK and US –, 1980-2020. Over this period, employment of the upper-middle and middle class strongly expanded, while the skilled and low-skilled working class shrank everywhere. Working-class households also made consistently smaller income gains than middle-class households in all countries except Poland. Real labor income of the working class declined in Germany, stagnated in the US and grew by less than one percent annually in France and the UK. A cohort analysis of wage growth shows that the promise of doing better than one’s parents and grandparents held for middle- class households. However, this same promise vanished for the working class – most evident in Germany and the US. The great economic loser of the last decades was not the middle, but the working class.
    Keywords: Social classes; Middle class; Employment structure; Working class
    Date: 2023–04
  9. By: Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia); Miroslav Palansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia); Jiri Skuhrovec (Datlab)
    Abstract: To understand public procurement suppliers linked to tax havens, we analyse datasets of tender-level public procurement and firm-level suppliers a provide a series of stylized facts. We estimate that around 5% of tenders by value (145 billion EUR yearly) are supplied by firms with ownership links to tax havens that are black- or grey-listed by the EU. For example, firms linked to the British Virgin Islands and Bermuda supply tenders worth over 900 per cent of their GDP. To address the question of which tenders are more likely to be supplied by firms linked to tax havens, we draw on a theoretical model and a tender-level empirical analysis. We find that tenders co-financed from EU funds and those attracting a larger number of bidders are less likely to be supplied by firms linked to tax havens. Any policy intervention might therefore rely on both an increased government oversight associated with EU funds or an increased firm competition.
    Keywords: public procurement; government expenditures; offshore finance; secrecy jurisdictions; tax havens
    JEL: F36 F65 G28 H87 H57
    Date: 2023–04

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